Arizona to get $20.7 million in foreclosure settlement

Arizona will get $20.7 million through a national settlement with Ocwen Financial Corp. over bad foreclosure practices. More than 10,000 people across the state could receive at least $1,000 in compensation.

The $2.1 billion national settlement is over alleged misconduct by Ocwen and subsidiaries Homeward Residential and Litton Home Servicing that resulted in in premature and unauthorized foreclosures and the use of false and deceptive documents.

“What we found in the Ocwen case is similar to a lot of the problems we saw in our other mortgage servicer enforcement cases,” said Attorney General Tom Horne. “This is part of our ongoing civil law enforcement effort to hold servicers, including Ocwen, accountable and ensure that they treat borrowers fairly.”

Nationally, Ocwen agreed to $2 billion in first lien principal reductions, and $125 million for cash payments to borrowers on nearly 185,000 foreclosed loans.

Ocwen, based in Atlanta, is the nation’s fourth largest mortgage servicer. The firm is also required to follow new mortgage servicing and foreclosure standards.

Homeowners and investors can still pursue individual, institutional or class action cases against Ocwen.

Borrowers whose loans are serviced by Ocwen may contact Ocwen at 1-800-337-6695 or by e-mail at ConsumerRelief@Ocwen.com. An outside settlement administrator will also be contacting borrowers who qualify for compensation from the settlement.

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